Lahore, 25 Dec 2020 : Pakistan Readymade Garments Manufacturers & Exporters Association has said that a huge number of export orders are being received by the value-added garment industry, however, exporters are unable to finalize them due to unavailability of fabric, especially the denim fabric in the country.

PRGMEA (NZ) vice chairman Adeeb Iqbal urged the government to also abolish duties on the import of fabrics as well as the denim fabric in line with the import relaxation provided on import of cotton yarn, as value-added garment sector is facing severe shortage of basic raw material of fabrics, which may lead to a drastic decline in value-added textile export.

He said that it was the right decision to remove Regulatory Duty on import of cotton yarn, which will accelerate the country’s textile exports but unfortunately the garment, which is the major sector of textile chains, has been neglected, as the reduction in yarn import duty will not benefit it.

It is unfortunate that the government’s cotton policy has reduced the country’s cotton production target from 14 million bales to 9 million bales. Due to the shortage of cotton yarn textile exports were fallen in previous months. He said that the cotton crisis in Pakistan was the biggest threat to the value-added textile sector than corona. The government resolved the issue timely by abolishing import duty on yarn to avoid the closure of the textile industry and a loss of jobs of millions of workers, he said.

“The government should now take the notice of shortage of fabrics, as foreign buyers were demanding shipments from them in 45 days while mills were giving them denim fabric in three months. In such a situation how they can fulfill orders,” he asked.

Adeeb Iqbal said that the textile sector is an important sector of the industrial economy and problems of this sector should be resolved on priority basis. He said that huge export orders have come in the textile sector and the economy cannot afford to close the factory even for a day. He said that the country is facing another severe wave of coronavirus and corona cases have been on the rise. He said that government guidelines are being fully implemented to keep the wheel of the industry running smoothly.

He called for taking steps for the removal of hurdles hindering exports of garment sector. He said that due to non-availability of latest fabric locally the garment sector currently has a limited product line for export market, adding that foreign buyers were demanding new garments on G3, G4 and technical fabric raw material which are neither available nor produced by Pakistani weavers.

DNA

ISLAMABAD, DEC 25 – The business community on Friday strongly opposed the additional withholding tax on sale of new cars on the pretext of controlling ‘On Money’ practice, stating the decision would further enhance the prices of already expansive vehicles in the country. 

PIAF chairman Mian Nauman Kabir said that the government has decided to impose up to Rs200,000 additional withholding tax on the purchase of new cars on the plea of discouraging ‘On Money’ but actually the move has been aimed at achieving FBR’s target of tax collection. 

He said that the locally-assembled cars are very expansive mainly due to exorbitant government taxes and high profit margins of the assemblers despite the fact that their quality is very low. The additional withholding tax of up to Rs200,000 will put more burden on the consumers, who are already buying the very costly vehicles as compared to rest of world. 

He said that the consumers were upset due to unnecessarily long delivery time for vehicles by the manufacturers. In order to discourage the practice of “on money” the government, instead of taking some solid measures, has imposed additional Withholding Income Tax, which does not seem to be logical. 

He said that government can control prices by checking various costs and then ensuring 20 or 30% profit of the company. “Right now car manufacturers have 1-year advances, which is more than their total investment,” he said. “Secondly, the government can definitely intervene to ensure quality, as a car carries a human being and human life is dependent on its quality. The companies in India, Canada or USA have different features and different safety modes and features. Same models in Pakistan have almost zero safety features where as price in Pakistan is much higher. Let’s forget price for sometimes but at least give us a safe vehicle with less oil consumption,” he argued.  

He said that nowadays 25% of the price is being charged in the name of on money. Even if you pay 100% you cannot get a car and have to pay ‘ON’ in lakhs, which is almost 25 percent of the total price that is right under the government nose and in knowledge of the concerned authorities, he added. 

PIAF leader appealed the government to devise some mechanism to regulate the automotive sector in view of the quality as well as the prices in consultation with all stakeholders including the industry as well as the consumers. 

Mian Nauman Kabir said that local manufactures revise their cars prices whenever they desire and that too without getting due approval from any authority, which affect the common people badly.  

The Engineering Development Board (EDB) will have to devise some rules and regulations to benefit the consumers along with securing the interest of the auto assemblers in the upcoming auto policy, he said. PIAF also suggests the Senate Standing Committee on Industries and Production to take the notice of exorbitant and ever-soaring prices of cars in Pakistan along with illegal practice of charging ‘on money’ or premium, he added. The Senate Standing Committee on Industries and Production, the Engineering Development Board, FBR, Pakistan Automotive Manufacturers Association and major Consumers Welfare Associations should sit together and finalize some mechanism to bring down the prices of automobiles in line with the rates of international market, by revising profit margins and decreasing taxes and duties in the larger interest of the public.

LAHORE Dec 25 (DNA) : Chairman United Business Group(UBG) and veteran trade leader Iftikhar Ali Malik Friday hailed the timely decision of Director General Trade Organisation (DGTO) barring 15 fake trade bodies of Balochistan for casting votes in the annual election of Federation of Pakistan Chamber of Commerce and Industry (FPCCI).

Talking to newsmen here today he said that it will pave the way for fair,free,transparent and impartial annual election of the apex body of chamber being held on December 30.

He said DGTO further ordered that Mrs Sonia and Mrs Mehreen Akhtar can not be nominees of Quetta Women Chamber of Commerce and Industry in Fpcci election.He said that we will also be successful in getting exclude another two bogus votes of Loralai Chamber of Commerce and Industry by submitting undeniable lawful documentary evidence.

UBG Presidential candidate for FPCCI Khalid Tawab said that engineer Daroo Khan Achakzai former President FPCCI and Haji Jamal Uddin Achakzai had challenged these 32 bogus votes on the grounds that these 15 trade bodies are not existing anywhere in the entire province and how their bogus votes can be included in the final list?

Khalid Tawab said now UBG will sweep election with overwhelming majority of record highest number of votes in the history of country.He said that all other genuine voters from Balochistan have assured the SM Muneer and other UBG leadership to fully support the our penal while one of our VP candidate from Balochistan Ms Farzana Ahmad Ali Baloch and another UBG VP candidate Adeel Siddiqui have also returned unopposed from Sindh seat which speaks of the popularity of the group as traders and chambers across the country have outrightly rejected the one man show of outgoing Fpcci president Anjum Nisar and his business man panel.

Pervaiz Lala, VP candidate from Punjab seat said that 90 percent voters from the province have publicly announced to support in forthcoming election.